Rise in provision amount for Unpaid Claims results just 8.36% growth in net profit of Nepal Life Insurance; Life Insurance Fund stands at massive Rs 1.07 kharba
Thu, May 13, 2021 5:42 AM on Financial Analysis, Latest,
Nepal Life Insurance Company Limited (NLIC) has reported growth in net profit by a meager 8.36% in Q3. The company reported a net profit of Rs. 50.66 crores compared Rs. 46.75 crores of the corresponding quarter of the previous year.
The paid-up capital of the company stands at Rs. 7.19 Arba and reserve and reserve and surplus stood at Rs. 1.12 Arba. Its life insurance fund increased by 32.25% to Rs. 1.07 Kharba and contingent fund stood at Rs. 59.89 crores.
The net premium increased by 35.49% to Rs. 24.95 Arba and income from Investment, Loan increased by 33.40% to Rs 5.48 arba.
The agent commission increased by 30.56% in this quarter. The company's net claim payment increased by 40.52% to Rs 7.29 arba till Q3. The number of policies stood at 1,370,136.
The provision for unpaid claims rises by 102.33% to Rs 1.46 arba.
The annualized EPS stood at Rs. 9.38 and net worth per share stood at Rs. 123.92. The company traded at a P/E multiple of 225.09 times.
Major Highlights:
| Particulars (In Rs '000") | Nepal Life Insurance | ||
|---|---|---|---|
| Q3 2077/78 | Q3 2076/77 | Difference | |
| Paid Up Capital | 7,199,971 | 5,496,161 | 31.00% |
| Reserve and Surplus | 1,123,436 | 2,732,174 | -58.88% |
| Life Insurance Fund | 107,617,724 | 81,376,667 | 32.25% |
| Contingent Fund | 598,954.75 | 475,710.75 | 0.00% |
| Net Premium | 24,956,064 | 18,418,779 | 35.49% |
| Re-Insurance Commission Income | 28,796 | 26,997 | 6.66% |
| Income from Investment, Loan and others | 5,480,860 | 4,108,639 | 33.40% |
| Claim Payment (Net) | 7,297,474 | 5,193,058 | 40.52% |
| Agent Commission | 2,847,616 | 2,181,048 | 30.56% |
| Provision for Unpaid Claims | 1,465,840 | 724,484 | 102.33% |
| Transferred to Life Insurance Fund | 20,340,423 | 15,215,141 | 33.69% |
| Gross Profit | -37,132 | 257,169 | 0.00% |
| Net Profit | 506,668 | 467,576 | 8.36% |
| No of Policies | 1,370,136 | 1,280,310 | 7.02% |
| EPS (In Rs.) | 9.38 | 11.34 | -17.28% |
| Net Worth per Share (In Rs.) | 123.92 | 158.37 | -21.75% |
| Qtr End PE Ratio | 225.09 | - | - |
| Qtr End Market Price | 2,112.00 | - | - |
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